Tax-Free Savings Account

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New for 2017

For 2017, investors may contribute up to $5,500 into their TFSA. For those who have not contributed to TFSAs in the past, eligible investors may contribute up to $52,000.

Annual TFSA contribution limit:

  • $5,000 for 2009, 2010, 2011 and 2012
  • $5,500 for 2013, 2014, 2016 and 2017
  • $10,000 for 2015

If you have any questions about TFSAs, please contact our Investment Funds Advisors at 1-800-661-6141.

Individuals aged 18 and older can contribute to a Tax-Free Savings Account (TFSA).

Some highlights of TFSA accounts:

  • Contributions to a TFSA will not be deductible for income tax purposes, but investment income, including capital gains, earned in a TFSA will not be taxed, even when withdrawn.
  • Unused TFSA contribution room can be carried forward to future years.
  • You can withdraw funds from the TFSA at any time, for any purpose.
  • The amount withdrawn can be put back in the TFSA at a later date without reducing your contribution room.
  • Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.
  • Contributions to a spouse’s TFSA will be allowed, and TFSA assets can be transferred to a spouse upon death.

Please note that while both TFSAs and RRSPs are tax-advantaged investment vehicles, there are important differences:

  • Contributions to an RRSP are deductible and reduce your income for tax purposes. In contrast, your TFSA savings will not be deductible.
  • Withdrawals from an RRSP are added to your income and taxed at current rates. Your TFSA withdrawals and growth within your account will be tax-free.

For a complete listing of forms and applications for TFSAs, click here.

If you have any questions about TFSAs, please contact our Investment Funds Centre at 1-800-661-6141.

 

To speak with an Investment Funds Advisor:
Call us at 1.800.661.6141 or
email us at info@phn.com